Parents are set to benefit from 15 hours free childcare per week from April 1st – what impact will this have on the business landscape? And on working mothers in particular?
This new government policy extends to 38 weeks of the year (during school term time), offering a significant amount of free childcare for working parents.
However, there have been concerns about whether there will be enough spaces for all eligible children, despite the ‘entitlement.’ So, what impact could this policy have?
- ONS data shows that three-quarters of mothers with dependent children are employed. In fact, the number of working mothers is at the highest level of the last 20 years. So this new policy could be a huge advantage for working mothers and female entrepreneurs.
- In addition to the new policy, further relief is coming for families through adjustments to the High Income Child Benefit Charge. Previously, families faced reductions in benefits when one parent earned above £50,000 a year. But starting in April, the system will shift to a household-based assessment, and the threshold for this charge will be increased to £60,000.
- Also, the upper limit at which the benefit is completely withdrawn will be raised to £80,000. This means that more families will keep some or all of their child benefits, offering crucial support during a time when managing household finances is increasingly challenging.
Commenting on the impact this new support could have, Lucinda O’Brien, money.co.uk business bank accounts expert, said:
“Firstly, for working mothers, childcare support is a crucial support system that could help with the significant time commitment and financial cost of childcare. Reducing childcare expenses could enable more women to return to the workforce or increase their working hours, improving their career prospects and financial independence. Also, the security of having reliable childcare could lead to reduced stress and increased productivity at work, as mothers would be less preoccupied with arranging childcare solutions.
“For female entrepreneurs, the impact could be even more significant. Start-ups and small businesses require a lot of attention and extensive time investment, which can be particularly challenging for people with young children, especially for women, who are statistically more likely to be the primary caregivers. The availability of free childcare could give these entrepreneurs the time and headspace needed to focus on their businesses and potentially lead to more female-led companies. This support could also encourage more women to pursue entrepreneurship, diversifying the business landscape and promoting gender equality even further.
“There are a couple of caveats to be aware of, however. It’s important to note that this policy only applies to England, although similar schemes are available in Scotland, Wales and Northern Ireland. The childcare must also be with an approved childcare provider, and it stops when your child starts school (or reaches compulsory school age). You may also have to pay extra costs like meals, nappies or trips.
“That said, introducing 15 hours of free childcare per week, alongside an improved child benefit charge system, is a promising step towards supporting working mothers and female entrepreneurs. Removing some of the challenges of balancing work and childcare, this policy can give women more economic opportunities and contribute to a more inclusive business landscape.”
